Segregated funds are primarily offered by which type of financial institution?

Segregated funds are primarily offered by life insurance companies due to their unique characteristics that combine elements of both insurance and investment. These funds are designed to provide investors with a level of protection and guarantees that are not typically associated with regular mutual funds. Specifically, segregated funds often include guarantees on the principal amount invested, and they can provide a death benefit that can be passed on to beneficiaries, which is a feature inherent to life insurance products.

Moreover, the benefits of segregated funds, such as the ability to bypass probate fees and potential creditor protection, align closely with the core offerings of life insurance companies, which are focused on risk management and the provision of financial security. This integration of investment products within a life insurance framework sets segregated funds apart from those provided by banks, mutual fund companies, or investment firms, which generally do not offer such insurance-related guarantees.